SINGAPORE: CBOT corn may retest a support at $7.58-3/4 per bushel, a break below which could open the way towards $7.44-1/2 to $7.51-1/2 range.
The contract failed twice to break a resistance at $7.82. The failures suggest the formation of a small double-top and a reversal of the uptrend from $7.25-3/4.
The pattern indicates a target of $7.44-1/2. Resistance is at $7.70-1/4, a break above which could lead to a gain into the $7.74-3/4 to $7.82 range.
CBOT corn may retest resistance at $7.82
On the daily chart, the drop on Monday confirmed a completion of the rise from the June 1 low of $7.20-1/2.
The rise is presumably driven by a wave B, the second wave of a three-wave cycle from the April 29 high of $8.24-1/2.
This wave will be reversed by a downward wave C which has just started.
The downtrend from the April 29 high of $8.24-1/2 remains steady as corn failed to break a falling trendline.
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